Wednesday, May 19, 2010

SBMA bares guidelines to expand free-port area for investors

SUBIC BAY FREE PORT—The Subic Bay Metropolitan Authority (SBMA) has released the guidelines for the creation of additional secured areas in communities near the free-port zone, as Subic authorities prepare to accommodate spillover investments this year.

According to SBMA Administrator Armand Arreza, the agency is now preparing to execute its expansion plan after completing the Implementing Rules and Regulations (IRR) covering the extension of the boundaries of secured areas of the Subic Bay Free Port.

The IRR, which was jointly drafted by the SBMA, the Bureau of Customs (BOC) and local government units within the Subic Special Economic and Free Port Zone (SSEFPZ) prescribes guidelines on what may be declared as additional secured areas, or additional areas, as provided under Executive Order 675.

The qualified areas contiguous to the Subic free port include Olongapo City; the municipalities of Subic and San Antonio in Zambales; and the towns of Morong, Dinalupihan and Hermosa in Bataan.

In a statement, Arreza said that under EO 675, parts of these communities “may be developed through local government or private-sector initiative and become part of the SSEFPZ.”

Consequently, these developed areas “may then avail [themselves] of appropriate tax, duty-free and fiscal-investment incentives and privileges, upon application and after approval by the SBMA,” Arreza added.

Arreza also explained that expanding into areas beyond the traditional secured areas of SSEFPZ “is necessary in order to address the shortage of space for lease to investors.”

This will also help “guarantee the realization of the Subic-Clark economic corridor as a world-class logistics and service hub,” he added.

With the newly released guidelines, areas contiguous to the Subic Bay Free Port may be declared by the SBMA for inclusion as additional secured area after proper consultation with local officials and approval of a resolution by the concerned city or town council.

The IRR also allows businesses to operate privately owned additional secured areas, provided these are approved by the SBMA for inclusion within the SSEFPZ.

Applicants for privately owned additional secured or additional area are required to submit pertinent documents, clearances and registration certificates.

Arreza also clarified that lands and buildings in the additional secured areas, whether privately owned or not, may only be leased to SBMA-registered enterprises. These leases should also be submitted for the approval or ratification of the SBMA board of directors.

Once declared as additional secured areas by the SBMA, the areas concerned will be subject to classification either as industrial, tourism, recreational, investment or financial center, or a mix of these developments.

Arreza said these areas shall be organized, administered, managed and operated directly by the SBMA through an area manager appointed by the SBMA administrator.

Aside from these, the IRR also provided that privately owned areas shall be managed by a Property Management Board, composed of the president of the association of investors, representative of the municipality concerned, two independent private-sector representatives chosen by the SBMA and the local government unit, and an official of the SBMA.

Meanwhile, to prevent smuggling and abuse of duty-free privileges, the SBMA shall establish secured fence-in perimeters for the additional areas within which tax- and duty-free articles and merchandise shall be limited.

Duty-free shop operators shall then be allowed within the additional secured areas as long as they establish their own control system in coordination with the SBMA and BOC, Arreza added. Written by Henry Empeño / businessmirror.com.ph Correspondent

SBMA sets expansion outside secured areas

By FRANCO G. REGALA - mb.com.ph

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) is now ready to implement its expansion program, following the release of the Implementing Rules and Regulation (IRR) covering the extension of the boundaries of secured areas of the Subic Bay Freeport.

The IRR was drafted after a series of consultations between the SBMA, Bureau of Customs (BoC) and local government units within the Subic Special Economic and Freeport Zone (SSEFPZ), which may be declared as additional secured areas, or additional areas, as provided under Executive Order No. 675.

These areas include the municipalities of Subic and San Antonio in Zambales; Morong, Dinalupihan and Hermosa in Bataan; and Olongapo City.

Under EO 675, areas within the LGUs may be developed through local government or private sector initiative and become part of the SSEFPZ. These may then avail of appropriate tax, duty-free, and fiscal investment incentives and privileges, upon application and after approval by the SBMA.

SBMA administrator Armand Arreza said that the expansion of the secured areas of SSEFPZ is necessary in order to address the shortage of space for lease to investors.

“This is necessary to push development into communities outside Subic’s ‘secured area,’ and also to guarantee the realization of the Subic-Clark economic corridor as a world-class logistics and service hub,” Arreza said.

Under the IRR, areas contiguous to the Subic Bay Freeport may be declared by the SBMA for inclusion as additional secured area after proper consultation with local officials and approval of a resolution by the concerned city or town council.

In addition, any business individual or organization may also apply with the SBMA for inclusion within the SSEFPZ as privately-owned additional secured area or additional area, provided that they submit pertinent documents, clearances and registration certificates.

Meanwhile, lands and buildings in the additional secured areas, whether privately owned or not, may only be leased to SBMA-registered enterprises, subject to the approval or ratification of the SBMA Board of Directors.

Once declared as additional secured areas by SBMA, the areas concerned will be classified either as industrial, tourism, recreational, investment or financial center, or a mix of these developments.

These areas shall be organized, administered, managed and operated directly by the SBMA through an area manager, appointed by the SBMA administrator.

The IRR also provides that privately owned areas shall be managed by a Property Management Board composed of the president of the association of investors, representative of the municipality concerned, two independent private sector representatives chosen by SBMA and LGU, and an official of SBMA.

To prevent smuggling and abuse of duty-free privileges, the SBMA shall establish secured fence-in perimeters for the additional areas within which tax- and duty-free articles and merchandise shall be limited.

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16 January 2012